Atlas Travel Soars Amid Recession's Turbulence
Think travel agencies have gone the way of the typewriter or the movie rental store?
Many have, but some have evolved and thrived. That’s the position Milford-based Atlas Travel International, which specializes in corporate travel, finds itself in today.
Atlas helps companies manage their travel budgets by negotiating rates with airlines, hotels, car rental agencies and other vendors. The company also designs custom trips for company retreats or as employee perks. And it organizes vacations for non-corporate travelers too.
The company saw its annual revenues increase from $142 million in 2008 to $179.5 million in 2010, an improvement of 26.4 percent. That helped it land at No. 6 on our list of top growth private companies in Central Massachusetts for 2011.
Focus On Corporate Travel
The travel business is tougher today, and works on slimmer margins, Osgood said. Atlas has succeeded by focusing on corporate travel, offering custom-tailored vacations and trips and keeping a close eye on industry trends.
The company has about 160 employees and an international presence with an office in London and through its partnerships.
Atlas is the only affiliate in the Northeast for corporate giant BCD Travel, which operates in more than 90 countries, according to its website. The relationship gives Atlas access to BCD’s negotiated rates at thousands of properties.
Osgood said some companies use vacation travel and activities as ways to build loyalty among high-performing employees.
Companies are trying to keep the best people they can and keep them happy, Osgood said.
The trips can range from a simple night in Boston to a golf trip to the Caribbean.
Many companies cut back on employee incentive programs and travel meetings during the recession, Osgood said, though companies are starting to bring them back.
As a result of those cutbacks, spending is down on a per account basis for Atlas.
More Clients
Recession or not, executives still need to travel. And Atlas more than made up for the decline in some forms of corporate travel by adding new companies to its client roster who wanted help trimming their costs.
Atlas has been somewhat recession-proof because of that service, Osgood said. And its clients come from a wide range of industries, from insurance to retail, which helps spread the risk.
The companies don’t usually have the time or clout to negotiate rates with various vendors and need help, Osgood said.
“They have their business to run,” she said. “We’ve been doing this for 25 years.”
The travel industry has changed in many ways over the past few decades. But what remains valuable for Atlas, Osgood said, is customer service. Company representatives can help travelers with itinerary changes or problems they might run into on their trips.
Osgood said some of her best customers are companies that booked business trips online and ran into cancellations or other trouble.
The business continues to evolve. Osgood said some airlines and other travel vendors are starting to show resistance to the booking system that has connected them with travel agencies for years.
As a way to save money, some airlines and vendors want agencies to link directly to their own individual systems.
It would be a big change and Atlas wants to be ready, so its IT team is designing a new system that would link to the vendors.
Osgood hopes the system will give Atlas an edge against its competitors.
“You always want to be ahead of that wave.” she said.
WBJ Web Partners
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